Why do we need it? - The MDU
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Why do we need it?

The legal position for a company differs to a partnership. Unlike a partnership, a company is a separate legal entity. In the event of a clinical negligence claim, the company as well as the individual could be sued.

Traditionally, clinical negligence claims have been made against individual healthcare professionals.

It is increasingly likely that a claim may be made against the company itself instead of, or as well as, the individual healthcare staff involved in treating the patient. This could occur when the doctor is employed by, or where the patient referral is organised by, a company.

Example 1

Poor procedures or patient management by the company

While an individual clinician may be sued for a negligent diagnosis, a patient may seek to make a further claim against the company. This could be for:

  • inappropriate treatment of their referral
  • lack of a system to follow-up on tests conducted
  • lack of assessment
  • poor quality training
  • lack of supervision of the practitioner by the company.

Indeed in some claims it may be not be possible to identify a single clinician who solely provided the negligent care.

Example 2

For liability for the actions of staff employed or engaged by the company

Historically, doctors have been liable for the acts of other healthcare professionals working under their direction. If practice nurses are acting under the direction of company managers, rather than employed doctors or dentists, the company may find itself being sued for their negligent actions.

In these examples, a company would need to be certain its interests were supported. The Corporate Indemnity Solution developed by the MDU is designed to do just that.

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